Oak Hill Capital Partners acquiring Checkers restaurants for $525m

Company outpacing growing quick-service industry and poised for additional growth.

Mar 24, 2017

Oak Hill Capital Partners announced March 23 that it has entered into a definitive agreement to acquire Checkers Drive-In Restaurants Inc. from Sentinel Capital Partners for $525 million. Operating under the Checkers and Rally’s banners, the company is one of the nation’s leading operators and franchisors of drive-thru hamburger quick-service restaurants (QSRs).

Consistent with Oak Hill’s philosophy of alignment of interests, Oak Hill is investing in partnership with Checkers' management.

“Checkers is a unique concept that is outpacing the growing QSR industry. The company has been able to win share in this large, stable industry through its differentiated value proposition and attractive franchised business model,” Kevin Mailender, partner at Oak Hill. “With a proven brand, a loyal customer following and strong unit-level economics, we are confident that the business will capitalize on its large white-space opportunity for new units.”

Mailender said Oak Hill is excited to partner with Checkers president and chief executive officer Rick Silva and his talented management team to support the company through its next phase of accelerated growth.

“We are delivering record growth at Checkers and Rally’s, and our franchisees, operators and employees are more excited than ever about our future. Oak Hill Capital Partners is a perfect partner to help us further accelerate our growth. This is extremely positive for our brand,” Silva said.

Tyler Wolfram, managing partner at Oak Hill, added, “We believe Checkers is well positioned to continue its long history of consistent growth. We have tremendous respect for Checkers’ heritage, its iconic brand and its fine leadership team. This transaction is consistent with Oak Hill’s long-standing theme-based investment philosophy and systematized approach to value creation, and it builds upon our 30-year history of investing behind leading businesses and management teams.”

The transaction, which is subject to HSR approval and other customary closing conditions, is expected to close in the second quarter of 2017. Additional financial terms of the transaction were not disclosed.

Founded in 1986, Checkers has more than 840 locations in 29 states and Washington, D.C.